BTC Excluded, the market generally corrects
Mainly affected by the Federal Reserve's important meeting at 3 AM tonight,
which will announce the interest rate decision for December,
3:30 AM Powell's routine press conference is even more critical.
Due to the significance of this rate cut, the market is taking a risk-averse stance in the short term.
The main focus of this meeting:
There is little doubt that the Federal Reserve will cut rates by 25 basis points this time.
If a 25 basis point cut occurs tonight, the total reduction for the year will reach 100 basis points.
The attention on this rate cut is due to its potential as "the end of the first phase in a two-phase rate cut cycle."
The stability of the US labor market is improving, inflation is slightly rising,
Trump's reform measures may reshape the economic outlook.
Federal Reserve officials need to consider how to respond to changes,
Powell faces doubts about further rate cuts.
Wall Street institutions expect a slower pace for the "second phase" of the Federal Reserve's rate cut cycle next year,
with a higher threshold, making a "three consecutive cuts" unlikely to happen again.
The important point of tonight's interest rate decision is whether the Federal Reserve will hint at pausing rate cuts in January.
Another focus is the number of rate cuts the Federal Reserve might implement next year; major Wall Street banks expect possibly one fewer cut, with a total reduction of 75 basis points next year.
